Real estate developer Unitech on October 27, 2021, appointed Ashok Kumar Yadav as its chief executive officer (CEO). The decision to appoint Yadav, a retired IAS officer of Haryana Cadre, was taken after a board meeting of the embattled company during a meeting the same day.
“Ashok Kumar Yadav has been appointed as chief operating officer of the Unitech Group of Companies with immediate effect. Further, the tenure of Ashok Kumar Yadav, Chief Executive Officer, Unitech Group of Companies has also been extended for a further period of two years, after the conclusion of his present term on 11.02.2022, concurrent with the term of the present Board of Directors, constituted with the prior approval of the Supreme Court, whichever is earlier,” the company said in a regulatory filing.
Yadav, 65, is an LLM from Panjab University, and has served extensively in the capacity of director and managing director of several non-profit organisations across sectors, the regulatory filing added.
Recall here that the Supreme Court in January 2020 directed the central government to take total control of the liquidity-starved Unitech after the company defaulted on major loans. Unitech promoters Sanjay and Ajay Chandra are currently lodged in separate jails in Mumbai in connection with their allegations that they siphoned off homebuyers’ money.
It begs mention here that they brothers were transferred to separate jails in Mumbai after it was found by the apex court that they were operating the Unitech business from the Tihar Jail, where they were earlier imprisoned, with help from the Jail staff. Duties of several officials of the Tihar jail have either been terminated or suspended in connection with the case. Several members of the Tihar jail staff have been charged with receiving money from Unitech promoters for providing personal favours.
Sanjay and Ajay Chandra were arrested in April 2017 on charges of duping homebuyers in 74 Unitech projects.
On October 25, 2021, the crime branch of the Delhi police conducted raids on as many as 37 locations across Delhi, Haryana and Rajasthan in connection with an ongoing investigation against Unitech and its promoters. The premises where there search and seizure operations by the Delhi Police were conducted belonged to Unitech founder Ramesh Chandra, his sons Sanjay and Ajay, and several employees of the company.
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Delhi court gives ED custody of Unitech founder Ramesh Chandra and his daughter-in law
Ramesh Chandra’s sons, Sanjay and Ajay Chandra, are already serving time in Mumbai jails
A Delhi court, on October 5, 2021, remanded Unitech founder Ramesh Chandra, his daughter-in-law Preeti Chandra and an executive of the embattled company to the custody of the Enforcement Directorate (ED).
While Preeti Chandra, the wife of Unitech promoter Sanjay Chandra will be in the ED’s custody till October 8, the enforcement agency has been allowed to keep Ramesh Chandra in custody till October 9. Rajesh Malik, an executive of Carnoustie Management (India) Pvt, a shell company allegedly linked to the case, will be in the ED custody till October 11.
On October 4, 2021, the ED arrested the three people in connection with its ongoing probe against the company. The arrests were made by the ED under various sections of the Prevention of Money Laundering Act, as the enforcement agency tries to crack a money laundering case pertaining to siphoning of Rs 2,000 crores by Unitech to Cyprus and Cayman Islands by Sanjay and Ajay Chandra.
Recall here that Ramesh Chandra’s sons, Sanjay and Ajay Chandra, are already serving time in Mumbai jails, where they have recently been shifted from Delhi’s Tihar Jail.
Unitech Group case: ED attaches assets worth Rs 30.29 crores
The ED has attached 29 land parcels of Unitech Group, worth Rs 30.29 crores at Sectors 96-98 in Noida
October 1, 2021: Continuing its probe against stressed real estate builder Unitech Group, the Enforcement Directorate (ED), on September 30, 2021, attached 29 of the company’s land parcels worth Rs 30.29 crores. Located at Sectors 96-98 in Noida, these land parcels in total measure nearly 13,600 sq metres. According to the ED, Unitech promoters Sanjay and Ajay Chandra used advances received from home buyers to illegally acquire these land parcels and later allocated it to Carnoustie Management (India) Pvt Ltd (CMPL).
Unitech promoters shifted to Mumbai after ED says they worked from Tihar jail
The Chandra brothers are also accused of visiting a secret underground office of the company, each time they were out on bail
August 27, 2021: The Supreme Court (SC), on August 26, 2021, directed Unitech promoters Sanjay Chandra and Ajay Chandra be shifted to separate jails in Mumbai, after it was informed that the jailed brothers have been getting assistance from jail officials to run company business.
After the Enforcement Directorate (ED) informed the top court that the Chandra brothers communicated freely with Unitech staff and issued directions to them, to dispose of company properties while getting full cooperation from the Tihar jail staff, the apex court directed that the duo be sent to the Arthur Road jail in Mumbai and the Taloja Central jail in Navi Mumbai.
The top court had earlier refused to grant bail to the Unitech promoters, saying it would consider their bail petition only after the unaccounted money parked by Unitech in various offshore accounts came back to India.
“We are of the view that materials on record indicate that despite the orders of this court, activities are taking place within the premises of the Tihar Central jail, where the two accused are lodged, which have the propensity to undermine the authority of the court, as also to derail the investigations which have been ordered to be done by the ED, including but not confined to the PMLA,” the SC said while directing the Delhi police commissioner to conduct a personal inquiry into the misconduct carried out by the Tihar jail authorities.
“The commissioner of police must cause an immediate enquiry…so that all officers and employees who will be found to be complicit in violation of the law are held accountable. This process should commence immediately and a report should be filed before this court within a period of four weeks on the action taken. We also clarify that the enquiry, which is directed to be conducted by the commissioner of police, shall be conducted personally by the commissioner and not delegated to other staff,” the SC said.
The ED also submitted in the SC that the Chandras visited a secret underground office, run by their father and erstwhile Unitech promoter Ramesh Chandra, in Delhi’s Green Park area each time they were out on bail or parole. Recall here that the Chandras have been in jail since August 2017, for misappropriating home buyers’ money.
“We also wish to impress upon the ED to proceed ahead with the investigation expeditiously. The investigation has been proceeding at a rather tardy pace and we now expect that the court should be apprised of the status of the investigation within a period of four weeks from today,” the two-judge bench added.
ED attaches properties worth over Rs 106 crores in Unitech money-laundering case
Worth over Rs 106 crores, all the three land parcels are located in Gurugram, the Millennium City where the builder is also headquartered
July 9, 2021: In a move that has brought the total worth of attached properties in the Unitech money laundering case to over Rs 537 crores, the Enforcement Directorate (ED) has attached three land parcels of the now-defunct real estate developer, once counted among the successful builders in the national capital region.
Worth over Rs 106 crores, all the three land parcels attached in the latest drive, are located in Gurugram, the Millennium City, where the builder is also headquartered.
The action by the federal agency, on July 7, 2021, is in pursuance of a money-laundering case against the builder and its jailed promoters, Sanjay and Ajay Chandra. The ED had, earlier in 2021, filed a case against the company and its promoters under various sections of the Prevention of Money Laundering Act (PMLA), over allegations of illegal diversion over Rs 2,000 crores to Cyprus and the Cayman Islands.
See also: Jaypee insolvency: Suraksha deposits Rs 100-crore performance bank guarantee
In a statement issued after the seizure of the land parcels, the ED said that the plots had been purchased by two dummy entities of the Chandras, Erode Projects Pvt Limited and Kore communities Pvt Limited, from the companies of Unitech Group.
“Both these companies are controlled by the promoters of Unitech Group and proceeds of crime have been transferred to these companies, after substantial layering in Singapore and the Cayman Islands,” the ED said in its statement. In March 2021, the federal agency also attached properties worth over Rs 81 crores in connection with the case.
Recall here that the Supreme Court (SC), on June 4, 2021, granted a 15-day interim bail to Sanjay Chandra to attend the last rites of his father-in-law. The top court, however, refused to grant more time to Sanjay, as requested by his lawyer.
On August 14, 2020, the SC rejected Sanjay’s bail plea, after he was granted an interim bail for 30 days a month earlier, on ‘humanitarian grounds’, because his parents had tested COVID-19 positive. It also directed him to surrender within three days.
Unitech case: ED attaches properties worth over Rs 150 crores
The ED has issued a provisional attachment order, to seize properties worth over Rs 150 crores, owned by Unitech’s promoters, as part of its money laundering probe
March 31, 2021: The Enforcement Directorate (ED), on March 30, 2021, has issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA), to seize company properties of the Unitech Group, worth over Rs 150 crores. Among the assets that the ED has attached, are 12 land parcels, measuring 48.56 acres in Gurugram, owned by the company’s promoters through proxies.
“The registered value of these land pieces comes to Rs 152.48 crores and these are owned by the promoters of Unitech Group, through proxy or benami entities like Crown Infra Projects Pvt Ltd, Kore Communities India Pvt Ltd and Joshu Gurgaon SEZ Pvt Ltd. These three companies are part of one Trikar Group/Kore Group, which is a benami investment of the Chandra family of Unitech Group,” the ED said.
See also: SC sets 45-day deadline for resolution, in Jaypee insolvency case
The ED claimed that for purchasing these properties, funds were transferred through Singapore-based companies like Joshu, Trikar Residential Developers and Trikar Property Opportunities, during 2015-2020. “The source of funds in these companies was from a Cayman Island-based entity, namely Trikar Fund Limited, which is being controlled by the Chandra family through another Cayman-based entity, Trikar Asset Management,” it said.
In an ongoing probe in a criminal case against the real estate builder and its promoters, Sanjay and Ajay Chandra, over charges of misappropriation of funds to the tune of Rs 2,000 crores, the agency had earlier in March 2021, raided 35 premises in the National Capital Region and Mumbai, unravelling a large network of benami companies.
On March 19, 2021, the Delhi High Court and a chief metropolitan magistrate also invited the Supreme Court’s ire, for entertaining the bail application of the Chandras, who have been lodged in Delhi’s Tihar jail. While stating that the HC and the trial court had no business entertaining the bail plea of the Chandras, the top court observed: “When we have specifically rejected bail in August (2020), how can the magistrate grant them bail? It is shocking… even more shocking that the order of the HC and the lower court mentioned the proceedings in the SC and they were aware of the order. How dare the HC grant them the liberty to approach the trial court and how dare the magistrate pass the order granting them bail in the face or our order? It is shocking to see the audacity of the magistrate. We are deeply pained.”
Unitech resolution plan: Delhi HC denies blanket permission to jailed MD, to attend mediation meetings
The Delhi HC has refused to grant a permission to jailed Unitech MD Sanjay Chandra, to be present at the mediation meetings of his company with home buyers
October 27, 2020: The Delhi High Court, on October 26, 2020, refused to issue a blanket order, allowing jailed Unitech MD Sanjay Chandra the permission to be produced physically at mediation meetings of his company with home buyers. Chandra had filed a plea in the HC, seeking a permission to this effect, saying it would speed up the dispute resolution process. Chandra, who has been in Tihar jail since August 2017, over allegations of siphoning off home buyers’ money, wanted the court to allow him the permission to be produced at Delhi’s Patiala House Courts Complex during the mediation meetings.
While stating that no such order could be passed, the HC, however, directed Chandra to move the trial courts concerned. In accordance with the law, the HC said, the trial courts could allow him the permission to visit the mediation centre.
The lawyer appearing for Chandra also told the court that the mediation proceedings, which were halted on account of the COVID-19 situation, had resumed and his client’s presence at these meetings would significantly cut the time spent in proceeding with the resolution framework.
Recall here that the Supreme Court, in January 2020, allowed the centre to take over the management of the embattled real estate developer, in order to offer relief to over 1,200 home buyers, who have invested in various projects of Unitech and have been waiting for possession for several years.
See also: All about the Amrapali Case
In July 2019, the centre had informed the SC that state-led National Building Construction Company (NBCC) was willing to help with the construction of various projects of the troubled real estate company, which primarily has housing projects spread across the NCR. The government also told the SC that a high-powered panel would be established to ensure that the projects were completed in a time-bound manner.
A forensic audit carried out on the order of the apex court had also revealed that the company failed to utilise Rs 5,063 crores of home buyers’ money and around Rs 763 crores of funds borrowed from financial institutions.
Unitech resolution plan: Nearly 15,000 homes to be delivered in 4 years
The resolution plan comes seven months after the SC, in January 2020, appointed a seven-member board, to take over the management control of Unitech and supersede its existing board
July 23, 2020: In a move that could provide some relief to over 15,000 buyers who have invested in various housing projects of the embattled Unitech Group, a Supreme Court-appointed board, has proposed a resolution plan for the company. The plan comes seven months after the SC, in January 2020, appointed a seven-member board, to take over the management control of Unitech and supersede its existing board.
The resolution plan suggested by the board would not only save the company from closure but also help nearly 15,000 buyers to get possession of their homes in a four-year timeline. Despite years of project delays, a majority of the buyers in the 86 stuck projects of the company, have been paying EMI. In its resolution plan, the board has said that the buyers will not have to suffer any additional burden, due to the proposed changes.
The resolution plan
Under the plan, which would require an estimated capital expenditure of over Rs 5,000 crores, Unitech’s land bank and housing inventory would be utilised, to arrange part of the liquidity. The embattled group, which has housing projects primarily in the national capital region, is currently sitting on an unsold inventory of around Rs 3,000 crores and land bank worth Rs 6,000 crores. For the remaining part, the board has suggested that the company apply for help from the centre’s alternate investment fund (AIF) SWAMIH.
In a move to lower the company’s outstanding liabilities, the board has also suggested that the Noida Authority waive the Rs 5,500-crore penalty that it had imposed on the cash-starved real estate company, over payment delays. Unitech owes the Authority a total Rs 8,000 crores, of which Rs 5,500 crores is just interest.
It has also proposed that banks lower the interest rate currently being charged on Unitech’s loans, to make the resolution process easier. The resolution plan pegs Unitech’s liabilities at over Rs 28,200 crores and its realisable assets at Rs 3,700 crores.
A final call on the proposed resolution could be taken by the apex court later this month, when it takes up the Unitech case for further hearing.
SC grants bail to Sanjay Chandra
Earlier this month, the SC granted bail to Unitech MD Sanjay Chandra, after his parents tested Corona-positive. His brother Ajay Chandra is still lodged in Tihar jail. The Chandras were arrested by the Economic Offences Wing of the Delhi Police in March 2017, for allegedly duping home buyers in a Gurugram project.
In December 2017, The National Company Law Tribunal (NCLT) took over the company’s management, over allegations of mismanagement and siphoning of funds, giving charge to the centre. In the same month, the SC stayed the NCLT order, after home buyers approached the apex court to seek relief.
Unitech crisis: SC refuses to pass order on Noida’s plea seeking return of surplus land
PTI
The Supreme Court has said that it will pass an order on the Noida Authority’s plea, seeking the return of surplus land from Unitech, after its new board submits a resolution plan
February 11, 2020: The Supreme Court, on February 10, 2020, refused to pass any order on a plea by Noida Authority, seeking return of 277-acre surplus land, worth Rs 8,000 crores, given to embattled realty firm Unitech Ltd on lease for housing projects which have not been built. The top court told the Noida Authority that it would be appropriate to wait till the newly-constituted board of directors of the company submits a resolution plan for the cash-strapped realty firm.
See also: SC stays sale of HDIL assets to repay dues of PMC Bank
“At present, we cannot allow Noida to walk away with the surplus land, which would not be appropriate. Once the newly constituted board of directors submit a resolution plan, then we will see what to do with the surplus land,” said a bench of justices DY Chandrachud and MR Shah. Solicitor General Tushar Mehta, appearing for Noida said that 347 acres of land was given to Unitech by the Authority in three sectors, for construction of housing projects but no construction has been done in a major chunk of the land. He said that thousands of crores of rupees are still outstanding on the part of Unitech to be paid to Noida and the unutilised land be restored to the Authority. The bench said that releasing the land at present may affect the preparation of resolution plan by the board of directors.
Unitech crisis: SC accepts centre’s proposal to take over management control
PTI
The SC has accepted the centre’s proposal, to take over management control of embattled realty firm Unitech Ltd and complete its stalled projects
January 20, 2020: The Supreme Court (SC), on January 20, 2020, accepted the centre’s proposal, to take over management control of Unitech Limited. The court granted two months’ time, to the new board of Unitech Limited to prepare the resolution framework and said that it would appoint a retired apex court judge, to monitor the preparation of the resolution framework. It also granted a moratorium of two months to the new board of Unitech Limited, from any legal proceedings.
The centre, on January 18, 2020, in a six-page note submitted to a Supreme Court bench headed by justice DY Chandrachud, said it was prepared to revisit its proposal of December 2017, to remove the existing management of Unitech Ltd and appoint 10 nominee directors of the government. The centre, however, said it would not infuse any funds for completion of pending projects of the company. It said the court, while ensuring a period of calm should direct a moratorium for 12 months.
For the proposed board, the government also suggested the name of retired Haryana cadre IAS officer Yudvir Singh Malik, as chairman and managing director of the board and names of members including A K Mittal, ex-CMD of National Buildings Construction Corporation (NBCC), Renu Sud Karnad, chairman of HDFC Credila Finance Service Pvt Ltd, Jitu Virwani, CMD of Embassy Group and Niranjan Hiranandani, MD of Mumbai-based Hiranandani Group. It said the court may appoint a retired judge of the Supreme Court for supervising the resolution framework finalised by the proposed board of directors.
It also sought permission for the proposed board of directors to raise funds due from the home buyers, to sell the unsold inventory and to monetise the unencumbered assets, for completion of the stalled projects.
Unitech loses property in Noida over Rs 1,203-crore dues
PTI
The Noida Authority has cancelled the allotment of a property to Unitech Ltd over pending dues of Rs 1,203 crores and has said that it is planning to reclaim possession of the property located in Sector 113
October 31, 2019: The Noida Authority, on October 30, 2019, said it has cancelled the allotment of a group housing property to crisis-hit realtor Unitech, over non-payment of dues worth Rs 1,203 crores. The property concerned is located in Sector 113, where the real estate group had also come up with 17 towers without getting the map cleared by the Authority, in violation of the Noida Building Regulation, 2010, it said.
“The allotment was cancelled on October 21, on instructions of Noida Authority CEO Ritu Maheshwari, who has directed officials to reclaim possession of the property within 15 days,” the Authority said in a statement. “The non-payment of dues includes those accruing from EMIs, interest, lease rent, and construction delay by Unitech worth Rs 1,203 crores,” it added. The group is also accused of trying to have an agreement to sell 19,181.50 sq metres of land to M/s Sethi Residents and M/s GMA Developers, making them third-party, without seeking the Authority’s permission.
NCDRC directs Unitech to hand over possession of flats, give compensation to 33 home buyers
PTI
The NCDRC has come down hard on embattled real estate company Unitech and directed them to pay compensation to 33 home buyers, complete construction of the flats within nine months, and hand over the possession to them
September 6, 2019: The country’s apex consumer panel, the NCDRC, has directed Unitech to pay compensation to 33 home buyers, complete construction of the flats within nine months and hand over the possession to them. The National Consumer Disputes Redressal Commission (NCDRC) has asked the real estate giant to pay compensation to the home buyers at the rate of eight per cent from the date committed for delivery of possession of the apartments, till the day on which the possession would be offered.
It directed the company to complete construction of the flats within nine months and to hand over the possession of those to home buyers in two months of obtaining occupancy certificate. “The opposite party, namely, Unitech Limited shall complete construction of the flats allotted to the flat buyers, in all respects, within nine months from today,” stated NCDRC presiding member VK Jain. The panel also directed Unitech to pay Rs 50,000 as litigation cost to the complainants. It said that any balance payable amount towards the price of the flat shall be adjusted out of the compensation payable to them.
Clear Rs 2,743 crore worth of dues or lose land, Noida Authority tells Unitech
PTI
The builder was allocated land for developing group housing societies in Noida’s Sector 113 and Sector 117 with dues of Rs 1,203.45 crore and Rs 1,539.84 crore pending against them respectively, said Noida Authority in a statement.
September 5, 2019: The Noida Authority has asked Unitech to clear its Rs 2,743.29 crore dues within 15 days against the land allocated to it for group housing projects or face cancellation of the allotments, officials said on September 4.
The builder was allocated land for developing group housing societies in Noida’s Sector 113 and Sector 117 with dues of Rs 1,203.45 crore and Rs 1,539.84 crore pending against them respectively, said Noida Authority in a statement.
Unitech was issued notices respectively on August 24 and August 30 for clearing the two dues, it said.
“On the plot in Sector 113, the group has also come up with 17 towers without getting the map cleared by the authority, in violation of the Noida Building Regulation, 2010, it added.
Unitech also tried to have an agreement to sell 19,181.50 sq metre of land to M/s Sethi Residents and M/S GMA Developers, making them third-party, without seeking the authority’s permission. This was done in violation of the lease law,î it added.
The Noida Authority said it has sought Unitech’s explanation in these two cases within 15 days besides payment of the pending dues, failing which it would initiate legal action against the builder after issuing recovery notice and cancelling the land allotment.
NCDRC directs Unitech to refund over Rs 1 crore to two home buyers
PTI
The National Consumer Disputes Redressal Commission (NCDRC) has asked Unitech Limited to refund, within three months, an amount of Rs 1,06,57,663 deposited by two home buyers, D Rameshbabu and Swaroop Nandakumar, in the company’s project ‘The Exquisite’ Nirvana Country 2, which was to be developed in Gurugram. It also directed Unitech to pay, as compensation, interest at 10% per annum on the principal amount, for the company’s failure to hand over possession even after a delay of six years.
“The opposite party shall refund the entire principal amount of Rs 1,06,57,663 to the complainants, along with compensation in the form of simple interest at 10% per annum, with effect from the date of each payment till the date of refund,” the commission said. It also asked the firm to pay Rs 25,000 as litigation cost to the two.
See also: Amrapali case: SC orders forensic audit report to be given to ED, Delhi police and ICAI
Nandkumar and Rameshbabu had booked a residential flat with Unitech in 2010. As per the sale agreement, the flat was to be delivered within 36 months of its execution, which means Unitech should have handed the possession over by October 20, 2013. However, even after expiry of the stipulated period and despite payment, they did not get possession of the flat, the two home buyers claimed in their plea.
NBCC to take up stalled housing projects of Unitech Ltd, centre informs SC
PTI
In a ray of hope for over 16,000 harassed home buyers, the centre has informed the SC that NBCC Ltd was willing to take up the stalled housing projects of the cash-strapped Unitech Ltd
July 30, 2019: A Supreme Court bench, comprising justices DY Chandrachud and MR Shah, on July 29, 2019, was informed by attorney general KK Venugopal appearing for the centre, that state-owned National Buildings Construction Corporation (NBCC) Ltd was ready to act as a project management consultant, for the stalled housing projects of Unitech Ltd. The top law officer said the centre has proposed a high-powered committee, headed by a former high court judge, to oversee the construction of the stalled projects and the panel can also have a retired technocrat, who would assist it in its functioning.
See also: Supertech promises homes to 14 buyers by December 2019, at UP RERA meet
The bench then asked lawyer Pawan Shree Agrawal, who is assisting the court as an amicus curiae, to post the proposal of the centre on the home buyers’ portal prepared by him, to enable the home buyers to mail their suggestions to him. The amicus curiae would then collate the suggestions of the home buyers and apprise the court about them, on August 9, 2019, when the court would pass a formal order and may appoint a committee and ask the NBCC to take up the housing projects, the bench said.
NBCC Ltd said it will not do the construction work itself but get the work done through other agencies or private players, to whom the work would be assigned in a fair and transparent manner.
The top court has also sought the names of the persons, including the former high court judge, from the parties for selecting the members of the panel, which has been suggested to be formed to oversee the completion of the housing projects. The bench also said that it would be taking the help of the existing panel, headed by former Delhi High Court judge, justice SN Dhingra, which has been authorised to sell the assets of the real estate firm in the venture, to ensure completion of the projects.
Delhi Consumer Commission orders Unitech to refund Rs 9 lakhs to Gurugram-based home buyer
PTI
The Delhi Consumer Commission has directed Unitech to refund over Rs 9 lakhs to a Gurugram resident along with simple interest at 10% per annum, for a six-year delay in handing over the possession of an apartment
July 23, 2019: The Delhi State Consumer Commission has observed that home buyers cannot be expected to wait indefinitely for possession of flats, after making payments. The observation came, as it directed Unitech to refund Rs 9,79,326 paid by Gurugram resident Ravinder Midha within 45 days, along with simple interest at 10% per annum, for the six-year delay in handing over the possession of an apartment. “The opposite party (Unitech) is not in a position to offer possession of the flat, it shall be liable to refund the amount with simple interest of 10 per cent per annum (from the date of payment by the purchaser) without any further liabilities,” the commission’s presiding member, justice Veena Birbal and member Salma Noor said. “There is no dispute that Unitech has failed to construct and deliver the possession of the flat till today. The complainants cannot be expected to wait for possession of the flat for an indefinite period,” they added.
According to Midha’s complaint, he had booked a 2BHK flat in Unitech’s ‘Unihomes’ project on May 21, 2011 for Rs 23,80,824, out of which he had paid Rs 9,79,326. He said even after receiving substantial payment, Unitech failed to deliver the possession of the flat to him and he is presently staying in a rental apartment. Midha also issued a legal notice in 2017 to the builder to which no reply was given.
NCDRC directs Unitech to refund over Rs 53 lakhs to 2 home buyers
PTI
The NCDRC has asked Unitech Limited to refund Rs 1.7 crores to a home buyer and also give compensation of simple interest at 10% per annum, for a 2-year delay in handing over possession of a property in Gurugram
June 7, 2019: The National Consumer Disputes Redressal Commission (NCDRC) has asked Unitech Ltd to refund, within three months, Rs 53,73,561 and give a compensation of simple interest at 10% per annum to Gurugram residents Abhishek and Mani Agarwal, for a delay of over seven years in handing over the possession of their apartment. “Refund the entire principal amount of Rs 53,73,561 to the complainants, along with compensation in the form of simple interest at 10% per annum, with effect from the date of each payment, till the date of full refund,” presiding member of the apex consumer commission, justice VK Jain said. The commission also asked the firm to pay Rs 25,000 as litigation cost to the home buyers.
See also: Jaypee Sports has 1 month to clear dues or may lose Yamuna Expressway land
The Agarwals had booked a residential apartment with Unitech Reliable Projects Limited, in a project namely ‘Capella’ in Uniworld City, which was to be developed in Greater Noida. According to the allotment letter, the apartment was to be delivered to them by November 30, 2011. However, their allotment was shifted to another project, namely, ‘Unitech Verve’, the possession of which was to be delivered within 15 months, that is, June 29, 2012. Although the real estate giant assured the home buyers of the possession of the apartment, the Agarwals failed to get their house, even after a lapse of more than seven years, after which they filed a complaint.
NCDRC directs Unitech to refund Rs 1.7 crores to a buyer, give compensation
PTI
The NCDRC has asked Unitech Limited to refund Rs 1.7 crores to a home buyer and also give compensation of simple interest at 10% per annum, for a 2-year delay in handing over possession of a property in Gurugram
May 15, 2019: The National Consumer Disputes Redressal Commission (NCDRC) has asked real estate giant Unitech Limited to refund Rs 1.7 crores to a home buyer, for failing to hand over the possession of an apartment. The apex consumer commission has asked the company to refund, within three months, Rs 1,77,95,300 and give a compensation of simple interest at 10% per annum, to Gurugram residents Amal and Minakshi Ganguli, for a delay of over two years in handing over the possession.
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“Refund the entire principal amount of Rs 1,77,95,300 to the complainants, along with compensation in the form of simple interest at 10% per annum, with effect from the date of each payment till the date of refund,” presiding member of the commission, justice VK Jain said. The commission also asked the firm to pay Rs 25,000 as litigation cost to the home buyer.
The Gangulis had booked a residential apartment with Unitech Limited in its ‘The Exquisite’ project in Nirvana Country-2 which was to be developed in Gurugram. They had booked the apartment on March 24, 2014 and the possession was to be delivered within 36 months. According to the allotment letter, the apartment was to be delivered to them by March 21, 2017. Despite the assurance given by the real estate giant, they were not given possession even after a lapse of more than two years, after which they filed a complaint.
SC withdraws facilities of jailed Unitech promoters, over non-cooperation
PTI
Unhappy with the non-cooperation of embattled realtor Unitech Ltd in the forensic audit, the SC has ordered the withdrawal of all the facilities given to its promoters, the Chandra brothers, in jail
May 10, 2019: Irked over the non-cooperation of Unitech Ltd’s promoters Sanjay Chandra and Ajay Chandra, the Supreme Court, on May 9, 2019, ordered the withdrawal of facilities given to the brothers and said that they should be treated like ordinary prisoners, as per the prison manual of Tihar jail where they have been lodged since 2017. In 2017, the apex court had directed the jail authorities to facilitate the Chandras’ meeting with their company officials and lawyers, so that they could arrange the money for refunding home buyers, as well as for completing the ongoing housing projects.
On May 9, 2019, after the forensic auditors told the court that Unitech has not cooperated with them, the top court said it is left with no other option but to order a CBI investigation in the affairs of Unitech. A bench of justices DY Chandrachud and MR Shah did not order the CBI probe in express terms, but said that it would like to have the assistance of attorney general KK Venugopal on the issue, on next date of hearing. The court said it would also like to hear from the attorney general on whether the government can take over the management of Unitech Group and its subsidiaries, to protect the interests of home buyers. It said the court would also like to have the assistance of the attorney general on the point of whether the government would like to complete the stalled projects of Unitech with the help of central construction agencies, to provide relief to home buyers, who have invested their hard earned money.
During the hearing, the forensic auditors told the bench that officials of Unitech were not cooperating in the investigation or providing details and data of transactions, which could enable them to track the diversion of home buyers’ money to other projects. Advocate Pawan Shree Agrawal, who was appointed as amicus curiae in the matter, told the court that the Gurugram municipal corporation had initiated auction proceedings, for selling a property worth hundreds of crores of rupees of Unitech. The bench then said that it was staying the auction proceedings for now, till the disposal of the petition pending before it.
On December 7, 2018, the apex court directed a forensic audit of Unitech Ltd and its sister concerns and subsidiaries by Samir Paranjpe, Partner, Forensic & Investigation Services in M/s Grant Thornton India. The forensic audit has been proposed in various phases, with the first phase focusing on 74 construction projects and the entities of Unitech involved. The amicus curiae appointed in the case has said in its report that out of 74 construction projects undertaken by Unitech, as many as 61 were incomplete and about 16,300 home buyers were involved in these projects.
SC refuses bail to Unitech promoters, in a case relating to siphoning of home buyers’ money
PTI
The Supreme Court has denied bail to Unitech Ltd’s promoters in a case of alleged siphoning of home buyers’ money, saying that the developer had failed to deposit the required money in the court’s registry
January 23, 2019: The Supreme Court, on January 23, 2019, refused bail to Unitech promoters Sanjay Chandra and Ajay Chandra, in a case relating to alleged siphoning of home buyers’ money. A bench of justices DY Chandrachud and Hemant Gupta said they have not complied with its October 30, 2017 order, which asked them to deposit Rs 750 crores with the apex court registry.
See also: SC orders the construction of 514 flats of Unitech, from auctioned property funds
Lodged in Tihar jail for over one-and-a-half years, the two have sought bail on the ground that they are complying with the apex court order and have deposited over Rs 400 crores. The apex court had, on October 30, 2017, ordered that the Unitech Limited managing director Sanjay Chandra will be granted bail only after the real estate group deposits Rs 750 crores with the registry.
The court was informed that the amount computed for refund to the home buyers may go above Rs 2,000 crores, while there were some buyers who want possession of flats. The counsel appearing for Chandra, had told the court that if they were given liberty, they would monetise their assets and would be able to complete the ongoing housing projects so that the buyers, who intend to have possession of flats, are satisfied. The amicus curiae in the case informed the court that around 9,390 home buyers, out of a total of around 16,000, have responded to him, on the issue of either seeking refund from the builder or getting possession of flats. He said around 4,700 buyers wanted refund.
Residents protest outside Unitech’s Gurugram office, over lack of amenities
PTI
Over 500 home owners of a Unitech’s project, staged a protest outside the developer’s office in Gurugram, alleging that they were yet to get the occupancy certificate and basic amenities like power, water and sewage connections
January 21, 2019: Over 500 families of a residential society staged a protest outside the office of promoter company Unitech Ltd, on January 19, 2019, alleging lack of basic amenities. The residents, who have been living there for four years, said they were yet to get the occupancy certificate, power connection from Dakshin Haryana Bijli Vitran Nigam and water and sewerage connections from Haryana Urban Development Authority.
See also: SC orders the construction of 514 flats of Unitech, from auctioned property funds
The residents claimed that the promoter company has made alternative arrangements, to provide these facilities but was charging higher fees.
Vikram Bishnoi, the president of the residents’ welfare association, said, “As the project was delayed, many residents forced the management of the promoter company for possession. The company officials have promised to provide us with all basic amenities. Later on, we learnt that they have not connected even sewer and water lines. As a result, things started getting worse. Besides, they have not taken power connection from DHBVN and hence, the entire condominium is running on diesel generator sets.”
Ramesh Chandra, chairman of Unitech Ltd said, “We are in a process of generating funds to the tune of Rs 10.5 crores, to solve these problems. Efforts are on to contact with respective government bodies.”
SC orders forensic audit of real estate firm Unitech Ltd
PTI
The Supreme Court has ordered a forensic audit of embattled real estate firm Unitech Ltd, which has failed to deliver flats to thousands of home buyers on time
December 10, 2018: A Supreme Court bench, headed by justice DY Chandrachud, on December 7, 2018, asked accounting firm Grant Thornton to carry out a forensic audit of Unitech Ltd and all its subsidiary companies since January 2006. Advocate Brajesh Kumar, appearing for some of the home buyers who have not received possession of flats booked with Unitech, said the court has asked Grant Thornton to give its preliminary report by December 14, 2018. The apex court has also asked the auditor to place before it, the draft terms of audit and timeframe within which it would be completed.
See also: SC orders the construction of 514 flats of Unitech, from auctioned property funds
On July 5, 2018, the top court had asked a panel headed by former Delhi High Court judge SN Dhingra, to proceed with the auction of Unitech Ltd’s unencumbered properties at Agra and Varanasi in Uttar Pradesh and Sriperumbudur in Tamil Nadu, to refund money to the home buyers.
The court had set up a three-member panel, for the expeditious auction of over 600 acres of land of the real estate firm, for refunding money to home buyers who did not want possession of their homes or flats.
Sanjay Chandra, the managing director of Unitech Ltd, is seeking interim bail from the apex court, after the Delhi High Court, on August 11, 2017, had rejected the plea in a criminal case lodged in 2015 by 158 home buyers of Unitech projects – ‘Wild Flower Country’ and ‘Anthea Project’ – situated in Gurugram in Haryana.
Apex consumer commission directs Unitech to refund over Rs 18 crores to home buyers’ association
PTI
The National Consumer Disputes Redressal Commission has asked Unitech to refund over Rs 18 crores, along with 10 per cent interest, to a home buyers’ union for failing to hand over the possession of apartments at its Unihomes-3 project in Noida
Novembe 8, 2018: The National Consumer Disputes Redressal Commission (NCDRC) has asked real estate giant Unitech Limited to refund over Rs 18 crores, to members of a home buyers’ union, for failing to hand over the possession of apartments. The apex consumer commission has asked the company to refund, within six weeks, the amount of Rs 18,84,19,025 deposited by the members of the Unihomes-3 Buyers Union, along with 10 per cent interest, from the date of deposit till the money is returned.
The association comprised of 33 individuals, who had purchased their flats from Unitech in the project called Unihomes-3 in Noida, Uttar Pradesh. “Refund the entire deposited amount paid by the members of the complainant within six weeks from today (November 6, 2018) along with simple interest of 10 per cent per annum from the date of payment of respective amount, till the realisation of the amount,” said the commission. It also asked the firm to pay Rs 10,000 as litigation cost to the association.
See also: Hyderabad HC orders Telangana government, TSIIC, to pay Rs 660 crores to Unitech
The housing project was launched in 2010, with an assurance to hand over apartments within 30 to 36 months from the date of signing of the agreement. The association members had individually applied for different flats in the projects and deposited 90 to 95 per cent of the total consideration amount. However, even after the expiry of the stipulated period, the possession of the flat was not delivered, the association claimed, in its plea.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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